I think people are just excited about the platform so they say Steem pays. Obviously the people who know about how crypto works know that it is not a literal payment but rather a token or coin on a blockchain on the internet.
For other non crypto savvy people it's easier to say "Hey steem pays if you put in consistent quality effort over time. And if you do it in a thoughtful and respectful way you can make some money."
I just don't like the term 'pays' in this context. I would rather say 'reward', thats what it is ;)